Greatbatch launches roughly $1 billion term B at Libor plus 375 bps

By Sara Rosenberg

New York, Sept. 22 – Greatbatch Ltd. launched on Tuesday its $1,025,000,000 seven-year term loan B with price talk of Libor plus 375 basis points with a 1% Libor floor and an original issue discount of 99, according to a market source.

The term loan B has 101 soft call protection for six months.

The company’s $1,525,000,000 credit facility (B1/B+) also includes a $200 million five-year revolver and a $300 million six-year term loan A.

Price talk on the term loan A is Libor plus 325 bps, subject to a leverage-based grid, and an original issue discount of 99.75, the source said.

Amortization on the term loan B is 1% per annum, and amortization on the term loan A is 5% in years one and two, 7.5% in year three and 10% in years four, five and six.

Credit Suisse Securities (USA) LLC, M&T Bank and Keybanc Capital Markets are the leads on the deal, with Credit Suisse left lead on the term loan B and M&T left lead on the revolver and term loan A.

Commitments are due on Oct. 8, the source added.

Proceeds will be used to help fund the acquisition of Lake Region Medical, a Wilmington, Mass., provider of outsourced manufacturing and engineering services to the medical device industry.

Greatbatch is a Frisco, Texas-based medical device company.

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